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Is this 1 or 2 large customers taking a massive stake to avoid the business getting sued into the ground? Or perhaps dumping equity by the backdoor because they
by __alexs 1y ago
Is this 1 or 2 large customers taking a massive stake to avoid the business getting sued into the ground? Or perhaps dumping equity by the backdoor because they are about to get sued into the ground?
- duxup 1y agoIt’s classified as a gift, like a charitable donation possibly.
- cj 1y agoNo, when you gift anything over $19,000 (I think) you need to file a "gift tax return", and the IRS taxes the gift accordingly. Almost certainly not classified as a charitable donation.
- yojo 1y agoMinor note: the overage from $19k isn’t auto-taxed, it is just recorded and counts against your $14M-ish lifetime gift tax exemption (also relevant for estate tax). In this case, he obviously blows past that limit quickly.
- _QrE 1y agoAccording to the article, the CEO sold stock, and gifted stock to at least four trusts that have, in turn, sold the stock gifted: > Subsequent filings from four trusts show that about half of his gifted shares were transferred to them. Those trusts have in turn sold most of the shares they reported receiving, netting at least $1.2 billion in proceeds so far. Seems like the CEO thinks that it's downhill from here; I'm not sure what other reason there would be to do this.
- pc86 1y ago> A spokesperson for CrowdStrike said the filings reflected estate planning and philanthropic activities Estate planning is very likely code for tax avoidance. I know basically nothing about Kurtz, I would venture this is all going to family and structuring this staggering generational wealth so they don't overpay taxes.
- lotsofpulp 1y agoEstate planning is about avoiding probate courts. It makes the transfer of control of assets much cleaner with almost no risk someone (e.g. an aggrieved family member) can tie it up in courts for who knows how long. It’s why you see even average personal homes placed in trusts.
- pc86 1y agoThe average personal home is absolutely not placed in a trust. It can be but moving your residence into a trust for estate planning purposes is not a common thing.
- toast0 1y agoIt depends on the state. california is known for expensive probate and has a lot of turnkey trust attorneys with strong marketting. I still don't know that 'the average personal home' is in a trust there, but there are lots of 'average personal homes' held in trust, not just big fancy houses. OTOH, California recently added a transfer on death deed that may provide a simpler way to avoid probate on homes, which may reduce the number of trusts formed just for that. A lot of people leave California and still think they need a trust in other states, so trusts in other states are growing in numbers as well.
- psunavy03 1y agoIt's also done if you have, say, a vacation home in another state or have other assets which would make probate complicated.
- psunavy03 1y agoThis depends highly on state law and how bad inheritance taxes are. "I have not seen this before" != "this is not common," as much as people on the internet tend to confuse the two.
- delfinom 1y agoI know plenty of average person homes placed into irrevocable trusts for avoiding the medicaid seizure by parents doing so many years ahead of time as they get old.
- chrisjj 1y agoHow could > 1 or 2 large customers taking a massive stake avoid the business getting sued into the ground ?
- tills13 1y agoThe shares are going to the 1 or 2 customers.